In portrait mode Surface is absolutely awkward to hold. I really don't see how anyone could deny that. It's just to long and narrow to make sense... However landscape mode is a different story.
Microsoft designed Windows 8 and the Surface by extension to be operated with your thumbs. In other words, you hold the tablet with two hands and use your thumbs to flip through the UI, This actually works really well and it does make the tablet perfectly comfortable to hold, although this is likely not how you're going to be using it 80-90% of the time. Like WillysJeepMan said above, this is really more of a netbook than a tablet. It is a PC before it is a consumption device.
That isn't to say that it can't be used for consumption, of course. I find it's excellent for browsing the web, watching movies and viewing pictures from my phone. Though when I do I usually have a mouse plugged in and the Surface is propped up on a table, desk, or my lap.